Oh my, technology has come so far with sculpting gels and anti-aging creams. Some of them really work! I have searched high and low for the perfect anti-aging facial creams. Maybe Nu Skin has the answer. On the other hand, if I sell Nu Skin, can I make money? Let’s do a Nu Skin MLM review to find out.
Can you make money from a direct sales MLM company like Nu Skin? Or, in reality, is this just another business model where most participants lose money from an inadequate incentive plan?
What Is MLM (Multilevel Marketing)?
An MLM, or Multilevel Marketing company, is a type of business that relies on its sales force to recruit additional salespeople below them, thus creating a “downline.” They receive a commission on the downline recruited into the MLM model.
Some people view MLMs as pyramid schemes or get-rich-quick opportunities to make quick money; on the contrary, very few break even and recoup their money.
So How Does Nu Skin MLM Work?
Nu Skin works like this: You buy products directly from Nu Skin, in addition, you share these products with your friends and family. If they purchase the products you recommended, you will be paid a commission. Which, is how Nu Skin makes money.
Who Is Nu Skin
Nu Skin sells skincare products and is a multi-level marketing company. They are an American company based in Utah. Robert Nitschke founded the company and has been called the “Father of Direct Selling.” Above all, his goal was to create a company where distributors could earn income without spending time selling.
The Nu Skin Story
In 1986, Robert Nitschke started his first direct selling company, Healthways International. It was later renamed Nu Skin Enterprises Inc. After a few years, he sold it to Amway Corp. However, after a year, he bought back Nu Skin from Amway. Then, he created Nu Skin Enterprises Inc. again.
In 1992, Nu Skin introduced the first-ever skincare product called the Nu Skin Moisturizing Lotion. This product was launched at $9.95 per bottle. Today, Nu Skin offers more than 300 different types of skincare products which, include moisturizers, cleansers, body butter, scrubs, lotions, sunscreens, serums, masks, and many other products.
Nu Skin Products
What products does Nu Skin offer, in addition, what will you promote if you join Nu Skin? Not to mention, do these personal care products work?
Nu Skin has a range of products. There most popular are:
- AGELOC Transformation Package – Nu Skin states this package is the most advanced anti-aging product they’ve ever created. $425
- Beauty devises Kit – a package of products.
- 1-AGELOC LUMISPA Device
- 1-LUMISPA Cleanser Normal/Combo
- 1-Conductive Gel
- 1-LUMISPA Ideal Eyes
- 1-AGELOC Power Mask
- 1-Facial Spa
- 1-AGELOC True Face Essence Ultra
The product list also includes nutritional supplements claiming to assist with many health issues.
Nu Skin MLM Review
Nu Skin has 825,000 Independent Distributors and operates in 52 countries globally.
The compensation plan states a Brand Affiliate does not need to pay to join, nor do they require any purchase of products. (see compensation plan below.)
Over the years, Nu Skin has been subject to many accusations of operating as an illegal Pyramid scheme.
Nu Skin has been in business for 30 years, which means they know how to get around the problems. And they have had their share of allegations and lawsuits.
However, I think they do a good job protecting themselves against any legal issues. They have a team of lawyers who help protect the company. They also have a Dispute Resolution Team that helps resolve disputes between distributors and customers.
So why are the company’s billion-dollar industry and the good team of lawyers still in business?
Allegations And Lawsuits
1990 – The FTC investigated NuSkin over complaints that it was an illegal pyramid scheme.
1992 – Nu Skin reached settlements with California, Florida, Illinois, Nevada, and New York that accused the company of deceptive marketing and overstating the incomes of distributors.
1994 – The FTC investigated Nu Skin for making false claims about its products and paid out $1 million along with a signed document saying they would not make these statements again.
1996 – 1996, Roney McKell, who was then known as Nedra Roney Tischner, a founder of Nu Skin, was charged with three third-degree felony counts of prescription fraud and another count of insurance fraud. She eventually entered a plea in abeyance to the charges and received three years of probation. Prosecutors agreed to dismiss the charges after she completed the probationary period.
1997 – Once again, Nu Skin paid the FTC another $1.5 million because of continued allegations and false promotional claims.
2014 – The Chinese government began an investigation into Nu Skin after People’s Daily called it a “suspected illegal .”
2016 – Two years later, Nu Skin paid $750,000 because they bribed a Chinese official with charitable funds. Not to mention, another $47 million paid to China for running a pyramid scheme.
Price To Join Nu Skin As A Brand Affiliate (Independent Distributor)
The compensation plan details state there is no price to join. Still, with this in mind, to become a Brand Affiliate, you will need to purchase a business kit that hopefully has marketing materials included. Business kits range from $370 – $3000 at the same time, your recruiting upline may try to convince you that you will have more success if you purchase a larger business kit.
Nu Skin Compensation Plan
Although the company states it does not cost to join, a Brand Affiliate can pay as high as $3000 for a business kit. Not to mention, the other expenses incurred like food, travel, and the hours spent recruiting new affiliates.
A Brand Affiliate can make money from retail sales as well as a commission from their recruited downline.
Here is a screenshot of the compensation plan that states there is no requirement to purchase products. Be that as it may, I know for sure that a distributor in any MLM has to buy products to promote them. This part of the compensation plan statement is a disclaimer to protect the company.
Here is a screenshot of the actual compensation plan layout; however it is so complicated, I am not sure who makes what. But what is clear is the monthly average sales compensation is before expenses.
Video Of The Nu Skin Compensation Plan
Benefits And Drawbacks Of Nu Skin MLM
So now that you have the most relevant information, let’s examine the Pros and Cons and determine what the potential truly is.
- Longevity, in business for 30 years
- No upfront fee to start
- The company has many allegations as a pyramid scheme
- To actually become a Brand Affiliate, you will need to pay a lot of money to purchase a business kit
- 97% of all Nu Skin Brand Affiliates do not break even after expenses to run their business
- The original founder of Nu Skin, Nedra Roney, was charged with prescription-drug fraud
- A confusing tier system compensation plan
Nu Skin Income Disclosure
I have included an image of the Nu Skin income disclosure with annual commissions and average income numbers which, basically says the same thing the compensation plan says.
With that said, the FTC (Federal Trade Commission) allowed David Vladeck, the chief of the Consumer Protection Bureau, to make all MLM companies exempt from requirements to release an income disclosure. In other words, some MLMs do release disclosures, and in this case, it tells us nothing.
Is Nu Skin A Scam?
A scam is a fraudulent business. A company is dishonest in what they offer; with this in mind, I don’t think the products produced by Nu Skin are a scam. While some may benefit from the products, on the whole, I do not believe the MLM portion is a scam, but they do border a scam.
Although the products are quite expensive and the customer service has poor reviews on the Better Business Bureau.
Is Nu Skin A Pyramid Scheme?
The definition of a pyramid scheme, according to Wikipedia, is: In a pyramid scheme, an organization compels individuals who wish to join to make a payment. In exchange, the organization promises its new members a share of the money taken from every additional member that they recruit.
After all, they have had numerous allegations and lawsuits stating they are a pyramid scheme and paid millions of dollars in claims.
Are you willing to take the financial risks required to make a buck with a poor success rate?
Video Overview Of The Nu Skin MLM Review
My Recommendations Regarding Nu Skin MLM
I do not recommend anyone join Nu Skin MLM.
In my research on Nu Skin MLM, I found the compensation plan is confusing, the income disclosure is subpar, with overpriced products. The customer service has many negative reviews that are outrageous, and the allegations against this company are horrendous.
In my opinion, a Brand Affiliate, active distributor, will more than likely purchase products to make a higher commission. This is how Nu Skin has risen to the top of the food chain of MLM companies.